eMachines was the American company that designed, produced and marketed personal computers, desktop displays and notebooks with headquarters in Irvine, California. It was founded in 1998 and was existing due to the support of South Korean partners and investors.
eMachines focused on a budget market segment. Its personal computers cost $399, $499 and $599 in 1990s comparing to the computer prices of their competitors – it was impossible to purchase a PC for less than $699. eMachines company became a real hindrance on the way to a larger income for such authoritative enterprises as HP, Compaq, Packard Bell and IBM back then. Apart from relatively low prices for computer equipment, eMachines attracted customers offering appreciable discounts and low-price but long-term additional services.
In the beginning of 2000s, in the course of unsuccessful financial estimation, the company started decreasing in value. It was even under the threat of exclusion from the NASDAQ stock market – its maximum stock price of $10 dropped to 14 cents. Therefore, eMachines became the private company soon after this failure, in 2001.
Many computer users do not agree on the widely spread opinion that eMachines’ products are of poor quality. In 2004, PC Magazine conducted a survey that revealed that the devices of this trademark had to be repaired fewer times (9 percent) than its rivals (Dell – 11 %, Gateway – 15 %) during the first year of operating.
The same year, Gateway, eMachines’ competitor, bought it for about 260 million USD. Furthermore, it invited the authorities from eMachines to the board of directors at Gateway.
In its turn, in 2007, famous Acer Inc. purchased Gateway. However, until 2012, the products have been released under eMachines brand. In 2013, at Consumer Electronics Show, it was announced that it gave over its activity.